Look back over the last hundred years and you’ll see the
pattern. During periods when the very rich took home a much
smaller proportion of total income — as in the Great Prosperity
between 1947 and 1977 — the nation as a whole grew faster and
median wages surged. We created a virtuous cycle in which an ever
growing middle class had the ability to consume more goods and
services, which created more and better jobs, thereby stoking
demand. The rising tide did in fact lift all boats.
I.e., the evidence overwhelmingly shows that “trickle-down economics” has it exactly backwards. The infographic that accompanies Reich’s article is just terrific.